KVORUM
aaveSource: Aave governor v2 · #362

Aave V2 Ethereum LT Reduction

executedNov 11, 2023, 12:38 PM UTCby320x329c…3ed4

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to reduce Liquidation Thresholds (LT) on 17 frozen assets in Aave V2 Ethereum as part of the v2 deprecation framework. Changes range from minimal (LINK: 82% to 81%) to substantial (1INCH and xSUSHI: reduced to 1%). Expected to trigger liquidation of approximately $1,101 in collateral across 20 accounts.

Type
parameter change

Key changes

  • Reduce 1INCH Liquidation Threshold from 24% to 1%(high)
  • Reduce xSUSHI Liquidation Threshold from 28% to 1%(high)
  • Reduce ZRX Liquidation Threshold from 37% to 34%(medium)
  • Reduce MKR Liquidation Threshold from 35% to 30%(medium)
  • Reduce MANA Liquidation Threshold from 48% to 37%(medium)
  • Reduce BAL Liquidation Threshold from 25% to 21%(low)
  • Reduce CRV Liquidation Threshold from 42% to 38%(low)
  • Reduce CVX Liquidation Threshold from 33% to 30%(low)

Notable concerns

  • 20 accounts will become eligible for liquidation upon approval
  • xSUSHI reduction will impact 9 accounts with $270 in cumulative liquidation
  • 1INCH reduction will impact 1 account with $163 in liquidation
  • All proposed LT reductions are set at minimum ~4% margin from levels that would trigger substantially more liquidations
  • Affected accounts will be publicly communicated by Chaos Labs prior to on-chain execution
ContractsAaveV2Ethereum
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

543 words

Simple Summary

A proposal to reduce Liquidation Threshold (LT) on Aave V2 Ethereum.

Motivation

In accordance with the v2 deprecation framework, Chaos Labs and Gauntlet advise implementing the subsequent parameter changes to the frozen assets on Aave v2 Ethereum

LT Reductions

The recommendations below suggest an LT configuration that optimizes reductions without significantly increasing the number of accounts eligible for liquidation. The proposed values are set at a margin of at least ~4% from the closest LT figure, which would trigger more substantial liquidations.

This will affect 20 accounts, leading to a cumulative liquidation of $1,101 in collateral value.

AssetCurrent LTRec LTValue Liquidated ($)Accounts Liquidated
1INCH24%1%1631
BAL25%21%432
BAT1%1%00
CRV42%38%101
CVX33%30%00
DPI16%14%361
ENJ50%50%00
ENS50%47%21
MANA48%37%281
MKR35%30%1491
REN27%25%571
SNX43%41%281
UNI70%64%00
xSUSHI28%1%2709
YFI45%43%00
ZRX37%34%3151
LINK82%81%00

As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. Chaos Labs will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.

Specification

Frozen Assets:

AssetCurrent LTRec LT
1INCH24%1%
BAL25%21%
BAT1%1%
CRV42%38%
CVX33%30%
DPI16%14%
ENJ50%50%
ENS50%47%
MANA48%37%
MKR35%30%
REN27%25%
SNX43%41%
UNI70%64%
xSUSHI28%1%
YFI45%43%
ZRX37%34%
LINK82%81%

References

Disclaimer

Chaos Labs and Gauntlet have not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal description details a specific, well-documented set of LT reductions across 17 frozen assets on Aave V2 Ethereum, referencing an on-chain implementation contract (AaveV2Ethereum_AaveV2EthereumLTReduction) and its associated tests. The single decoded on-chain action, however, is a generic 'forwardPayloadForExecution' call — the standard Aave governance bridge/executor pattern that forwards execution to a separate payload contract (referenced only by ID and address, not fully decoded here). Because the actual per-asset LT parameter changes live inside that separate payload contract's bytecode and are not expanded in the provided decoded_arguments, there is no way to directly verify or dispute the specific numeric LT values claimed in the description against on-chain state from this data alone. This is expected and typical for Aave AIP proposals structured this way, and does not by itself indicate any mismatch — it simply means confidence in a granular comparison is low. Nothing in the decoded action contradicts the described intent (an LT reduction action targeting Aave V2 Ethereum), and the payload controller address is consistent with Aave's known governance infrastructure. Given the opacity of the forwarded payload, I cannot assert a discrepancy, but I also cannot fully confirm exact parameter matches, hence low confidence and no discrepancies flagged.parseInt

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0forwardPayloadForExecution((uint256,uint8,address,uint40))chain 0x1
Target
0x9aee…2bc7
Value
0 wei
Function
forwardPayloadForExecution((uint256,uint8,address,uint40))
Arguments
{
  "0": [
    "1",
    "1",
    "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5",
    "2"
  ]
}
Calldata

05Tally

Summed from votes

Voters14
VP participating454.2K
Outcome (current)For
Current support100%

06Voters

14 total
Filter:
VoterChoice% of totalRationale
320x329c…3ed4For116.4K25.63%—3y ago
130x13bd…8548For61.3K13.50%—3y ago
230x2331…7e73For60K13.21%—3y ago
2C0x2cc1…4df1For43.7K9.61%—3y ago
B90xb933…8dd1For42.4K9.33%—3y ago
EA0xea17…6676For38.8K8.53%—3y ago
EZezr3al.eth0x8659…7d0eFor38K8.37%—3y ago
570x57ab…2922For27.1K5.97%—3y ago
870x8787…ea52For21.1K4.64%—3y ago
180x1855…98baFor5K1.11%—3y ago
C80xc84c…784cFor408.70.09%—3y ago
6F0x6f42…8b67For20.00%—3y ago
5A0x5a89…f2a5For00.00%—3y ago
190x196e…2ec1For00.00%—3y ago
Showing 14

07Forum

No forum thread is confidently linked to this proposal.